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EU leaders will consider whether to impose an oil embargo on Russia over its invasion of Ukraine as they gather this week with US President Joe Biden for a series of summits designed to harden the West’s response to Moscow.

Seeking to force a military withdrawal from Ukraine by Russian President Vladimir Putin, the EU — along with Western allies — has already imposed a panoply of punishing sanctions including the freezing of the assets of the Russian central bank.

“We are working on the fifth round of sanctions and many new names are being proposed,” a senior EU diplomat said on condition of anonymity because the discussions are not public.

Saudi Arabia now the top crude oil supplier to China

Saudi Arabia has regained the spot as China's top crude supplier in the first two months of 2022, having been leapfrogged by Russia in December, while Russian shipments dropped 9 percent as a cut in import quotas led independent refiners to scale back purchases.

Arrivals of Saudi crude totaled 14.61 million tonnes in January-February, equivalent to 1.81 million barrels per day, down from 1.86 million bpd a year earlier, data from the General Administration of Customs showed on Sunday.

Imports from Russia totaled 12.67 million tonnes in the two months or 1.57 million bpd. That compares to 1.72 million bpd in the corresponding 2021 period.

Chevron pulls union workers from California refinery ahead of strike

Union workers were removed from a Chevron Corp. oil refinery near San Francisco hours ahead of a deadline to begin the first labor strike at the gasoline producing plant in more than 40 years.

More than 500 United Steelworkers members were bussed out of the plant Sunday evening and replaced by non-union staff. No new contract talks are planned, said USW Local 5 First Vice President B.K. White in an interview.

The existing labor contract at the Richmond, California, refinery expired Feb.1, and efforts since then failed to reach an agreement. The union twice voted to reject the company’s offers.

“The union’s demands exceeded what the company believes to be reasonable and moved beyond what was agreed to as part of the national pattern bargaining agreement,” Chevron spokesperson Tyler Kruzich said.

Chevron, he said, “is committed to continuing to negotiate toward an agreement” and has taken steps to continue normal operations at the facility.

The last strike at the 245,000 barrel-per-day plant, which produces gasoline, jet fuel, and diesel fuel, took place in 1980 as part of a nationwide walkout.

Brazil cannot add oil to the market any faster, says regulator

Brazil this decade expects to gradually add 3 million barrels per day of oil and gas to its production but cannot speed up those plans to offset a ban on Russian oil, top oil regulator Rodolfo Saboia told Reuters last week.

One of the largest and fastest-growing non-OPEC oil producers, the South American country is expected to pump significantly more oil in the next two years at a time when buyers are searching for supplies to replace Russian crude blacklisted over its invasion of Ukraine.

Brazil's geology and supply chain constraints mean it can take up to 10 years to place new projects into production, he said. Its oil largely comes from deepwater fields that require expensive platforms and subsea components, Saboia said.

"Production will grow, but there isn't much that can be done to accelerate it," added Saboia.

Norway’s Equinor shuts Snorre B oil platform

Norway’s Equinor has shut its Snorre B oil platform as a precautionary measure following an earthquake in the North Sea, although no damage has been reported so far, the company said on Monday.

It was not yet clear when Snorre B, which produces between 30,000-35,000 barrels per day of oil, could resume normal operation, Equinor spokesperson Gisle Ledel Johannessen said.

“Our focus now is on the safety. At Snorre B, the production has been shut down as a precaution,” he said.

The quake, which took place early on Monday, had an estimated magnitude of 4.6, according to the Norwegian National Seismic Network.

The refusal by the US and Britain to purchase Russian oil would have little impact on Moscow because they only buy small amounts of Russian crude, Deputy Prime Minister Alexander Novak said on Monday, according to Interfax news agency.

Novak said Russia was in the process of resolving logistical issues linked to its oil shipments abroad and that the country’s oil and gas production was continuing as usual despite sanctions. 

He also said it is impossible for Europe to refuse Russian gas for now.

Oil embargo will hurt Europe, says Kremlin

The Kremlin said on Monday Europe would be hit hard in the event of an embargo on Russian oil, striking the continent’s energy balance, but would not affect the US.

Some EU foreign ministers are pushing for an oil embargo as part of a possible fifth round of sanctions against Russia, in an effort to punish Moscow over events in Ukraine.

“Such an embargo would very seriously impact the global oil market, very badly impact energy balance on the European continent,” Kremlin spokesperson Dmitry Peskov told reporters on a daily conference call.

Oil prices jumped $3 on Monday, with Brent above $110 a barrel, as a weekend attack on Saudi oil facilities caused jitters.

Brent crude futures climbed $3.44, or 3.2 percent, to $111.37 a barrel by 0443 GMT, adding to a 1.2 percent rise last Friday.

US West Texas Intermediate crude futures rose $3.54, or 3.4 percent, to $108.24, extending a 1.7 percent jump last Friday.

RIYADH: The Digital Cooperation Organization, a global initiative focused on improving the digital economy, is working toward encouraging fledgling companies to tap international markets through its startup program.

Called Startup Passport, the program helps startups do business across borders more efficiently while maintaining their footprint in their country of origin, said Hassan Nasser, vice president of international affairs of DPO.

The program has opened up potentially lucrative markets with a combined population of over half a billion people and a combined gross domestic product of nearly SR7.5 trillion ($2 trillion), reported the Saudi Press Agency.

“By creating a new market expansion in DCO countries and beyond, you will positively impact these other markets,” said Naseer.

He said that the expansion of startups would create new economic entities, improve employment within DCO member states and nurture innovative solutions.

By creating a new market expansion in DCO countries and beyond, you will positively impact these other markets.

According to Nasser, these innovative solutions could find wider acceptance with most startups focusing on sustainability and conservation.

In fact, the DCO Global Roundtable Series at the World Telecommunication Development Conference in June was meant to bring together global leaders to advance digital prosperity.

Naseer explained that the roundtable provides a platform for leaders worldwide to exchange perspectives on improving cooperation in the digital space and delivering an inclusive, sustainable digital economy.

The first roundtable had around 35 participants from 20 different countries.

The program has opened up potentially lucrative markets with a combined population of over half-a-billion people and a combined gross domestic product of nearly SR7.5 trillion ($2 trillion).

In Nasser’s view, cross-border cooperation is one of the critical reasons for the existence of DCO. “That’s one of the reasons DCO exists, to help on that and drive this cross-border cooperation,” he said.

Developing an efficient model requires cooperation, reducing costs and increasing return on investment by defining the best solution.

“There are a lot of challenges when it comes to digital investment, digital skills, digital empowerment, where we need more cooperation,” Nasser said.

As Nasser explained, DCO does not compete with anything but addresses a gap and complements a need.

The DCO will deliver its future roundtables in Latin America, Europe, Asia, and the United Nations General Assembly in New York.

Commenting on the UN General Assembly, he said it “will be a place where we get a global audience for this important session.”

He added: “A vital component of the organization’s mission is launching initiatives that will benefit all member states.”

With 11 member nations, DCO aspires to bring inclusive growth in the digital economy across its member nations, such as Bahrain, Djibouti, Jordan, Kuwait, Morocco, Nigeria, Oman, Pakistan, Rwanda, Saudi Arabia, and Cyprus.

The organization was launched in early 2022 at LEAP, a global event for future technologies held in Riyadh.

DUBAI: Spain's Acciona, a leader in sustainable solutions for infrastructure and renewable energy, has been rejecting projects that are not carbon neutral as part of its commitment to environmental protection.

According to a top executive, the company has been turning down projects directly involved in oil and gas extraction or production since they will add to the carbon dioxide emissions on its balance sheet.

Founded in 1931, the company has been carbon neutral since 2016, said Acciona's Middle East Director-General Jesus Sancho while speaking to Arab News.

"That's something easy to say, but it is very difficult to achieve for a company which is present across 60 countries in the world," he said.

That’s something easy to say, but it is very difficult to achieve for a company which is present across 60 countries in the world.

Sancho explained that one part of the company invests solely in renewable energy to achieve carbon neutrality. Acciona owns and operates its assets, including more than 12 gigawatts of renewable energy, contributing to negative carbon emissions.

As for renewable energies, the company has solar thermal, photovoltaic, concentrating solar-thermal power and wind farms, all of which are carbon-negative and offset the carbon dioxide generated by the other areas of the company, he added.

The challenge for Acciona, which has invested approximately SR1.8 billion ($500 million) in projects, is minimizing each project's carbon footprint to achieve carbon neutrality.

The challenge for Acciona, which has invested approximately SR1.8 billion ($500 million) in projects, is minimizing each project’s carbon footprint to achieve carbon neutrality.

"We are focusing on projects aligned with our philosophy," he said, adding that his company's sustainability master plans were well aligned with Saudi Arabia's Vision 2030's goals.

The company's sustainability commitment has already invited the attention of the futuristic smart city, NEOM.

Acciona, according to Sancho, is bidding for NEOM in the heavy civil area with hopes of contributing to the Kingdom's projects.

The company is currently working on water treatment plant projects in the Kingdom. It has also set up desalination plants in Alkhobar 1, Alkhobar 2 and Shuqaiq 4.

Acciona also built the Shuqaiq 3 desalination plant to full capacity, producing 450 million liters of potable water daily. In addition, the plant is equipped with energy-efficient seawater reverse osmosis technology.

SHANGHAI: Five Chinese state-owned companies, including oil giant Sinopec and China Life Insurance, said on Friday they would delist from the New York Stock Exchange, amid economic and diplomatic tensions with the US, according to Reuters.

The companies, which also include Aluminium Corporation of China, PetroChina and Sinopec Shanghai Petrochemical Co, each said that they would apply to delist their American Depository Shares this month.

The five, which in May were flagged by the US securities regulator as failing to meet its auditing standards, will keep their listings in Hong Kong and mainland Chinese markets.

Beijing and Washington are in talks to resolve a long-running audit dispute that could see Chinese companies banned from US exchanges if they do not comply with US rules.

Washington has long demanded complete access to the books of US-listed Chinese companies, but Beijing bars foreign inspection of audit documents from local accounting firms, citing national security concerns.

There was no mention of the auditing dispute in separate statements by the Chinese companies outlining their moves, which come amid heightened tensions after last week’s visit to Taiwan by US House of Representatives Speaker Nancy Pelosi.

“These companies have strictly complied with the rules and regulatory requirements of the US capital market since their listing in the US and made the delisting choice for their own business considerations,” the China Securities Regulatory Commission said in a statement.

The agency added that it would keep “communication open with relevant overseas regulatory agencies.”

The oversight row, which has been simmering for more than a decade, came to a head in December when the Securities and Exchange Commission finalized rules to potentially prohibit trading in Chinese companies under the Holding Foreign Companies Accountable Act. It said 273 companies were at risk.

Some of China’s largest companies including Alibaba Group Holdings, J.D Com Inc. and Baidu Inc. are among them. Alibaba said last week it would convert its Hong Kong secondary listing into a dual primary listing which analysts said could ease the way for the Chinese ecommerce giant to switch primary listing venues in the future.

In premarket trading Friday, US-listed shares of China Life Insurance and oil giant Sinopec fell 5.7 percent about 4.3 percent respectively. Aluminium Corporation of China dropped 1.7 percent, while PetroChina shed 4.3 percent. Sinopec Shanghai Petrochemical Co. shed 4.1 percent.

A spokesperson for NYSE declined to comment. A spokesperson for the Public Company Accounting Oversight Board, the audit watchdog overseen by the SEC, did not immediately provide comment. Losing Patience? 

Market-watchers were split over what the delistings might mean for the audit deal, with some saying it was a bad sign.

“China is sending a message that its patience is wearing thin in the audit talks,” said Kai Zhan, senior counsel at Chinese law firm Yuanda, who specializes in US capital markets.

The companies said their US traded share volume was small compared with those on their other major listing venues.

PetroChina said it had never raised follow-on capital from its USlisting and its Hong Kong and Shanghai bases “can satisfy the company’s fundraising requirements” as well as providing “better protection of the interests of the investors.”

Global fund managers holding US-listed Chinese stocks are steadily shifting toward their Hong Kong-traded peers, even as they remain hopeful the audit dispute will eventually be resolved, Reuters reported this week.

“These companies are very thinly traded with very small US market cap so it is not a loss for US capital markets,” Brendan Ahern, CIO of Krane Funds Advisers, which has a New York-listed fund focused on Chinese tech plays, wrote in an email.

He and analysts said the delistings could pave the way for China to comply with the US requirements, since the five companies concerned likely have sensitive information China would not want exposed in an audit review.

“We see this as a positive sign. This is consistent with our view China will decide what companies would be allowed to be US-listed and thus subject to SEC’s audit investigations,” Jefferies analysts wrote in a note.

China Life and Chalco said they would file for delisting on Aug. 22, with it taking effect 10 days later. Sinopec, whose full name is China Petroleum & Chemical Corporation, and PetroChina said their applications would be made on Aug. 29.

China Telecom, China Mobile and China Unicom were delisted from the US in 2021 after a Trump-era decision to restrict investment in Chinese technology firms.

That ruling has been left unchanged by the Biden administration amid continuing tensions. 

BENGALURU: US stock index futures rose on Friday, setting the S&P 500 and the Nasdaq for a fourth straight week of gains on easing bets of another super-sized interest rate hike by the Federal Reserve.

The S&P 500 is up 15 percent from mid-June, with the latest boost coming from a slower-than-expected rise in consumer prices and a surprise drop in producer prices in July.

The benchmark index is within sight of a 50 percent retracement of its bear market loss and investors are watching the 4,231 level. The index last closed at 4,207.27.

While policymakers remain firm about a further tightening in monetary policy until inflation pressures fully abate, traders see a 63.5 percent chance of the Fed raising rates by 50 basis points next month instead of a 75 basis points hike.

The Fed has raised its policy rate by 225 basis points since March as it battles to cool demand without sparking a sharp rise in layoffs.

High-growth and technology stocks such as Tesla and Nvidia rose 1 percent each in trading before the bell as investors flocked back to riskier assets.

Growth stocks have underpeformed their value counterparts so far this year on worries that rising Treasury yields due to aggressive rate hikes will pressure their valuation.

Investors bought $7.1 billion in equities in the week to Wednesday, according to a Bank of America note, with US growth stocks recording their largest weekly inflow since December last year.

Meanwhile, banks looked set to extend their rally for sixth straight week, with JPMorgan Chase & Co. and Goldman Sachs gaining 0.4 percent each in premarket trading.

At 07:28 a.m. ET, Dow e-minis were up 106 points, or 0.32 percent, S&P 500 e-minis were up 13.75 points, or 0.33 percent, and Nasdaq 100 e-minis were up 42 points, or 0.32 percent.

Rivian Automotive Inc. slipped 0.2 percent even as the electric-vehicle maker reported better-than-expected second quarter revenue.

The University of Michigan’s preliminary survey of consumer sentiment for August is expected at 10:00 am ET. 

LONDON: Gold prices inched lower on Friday but were still on track for a weekly rise, as an overall weakness in the dollar offset pressure from an uptick in bond yields and expectations of further rate hikes from the US Federal Reserve.

Spot gold was down 0.2 percent at $1,786.06 per ounce, as of 1200 GMT.

Bullion was still headed for its fourth straight weekly gain, up nearly 1 percent in its longest weekly rally in almost a year.

US gold futures fell 0.3 percent to $1,801.10.

The dollar edged 0.4 percent higher on the day, but was down about 1 percent for the week.

A weaker greenback makes bullion less expensive for overseas buyers.

“Inflation easing a little has aided gold’s rally to $1,800. But risk assets were quickly preferred and gold’s rally stalled. If risk appetite fades over the next couple of weeks, that could support a move above $1,800,” OANDA analyst Craig Erlam said.

Market participants have toned down expectations of an aggressive rate hike by the Fed after cooler-than-expected inflation data released earlier this week.

However, recent comments by some Fed officials continue to highlight a hawkish tilt. Gold’s appeal tends to dim amid high-interest rate environment, as the metal yields no interest.

Fed’s Mary Daly said on Thursday that while a half-percentage-point interest rate hike in September “makes sense,” she is open to the possibility of a bigger hike.

“The ongoing tightening of monetary policy is still having a braking effect on gold... Market participants remain correspondingly cautious and have been withdrawing funds from the gold ETFs of late,” Commerzbank said in a note.

Weighing on gold, US Treasury yields hovered near a three-week high.

Spot silver fell 0.1 percent to $20.28 per ounce, palladium slipped 1.5 percent to $2,242.90. Platinum fell 0.8 percent to $948.29 per ounce.